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The Northern Davao Electric Cooperative (Nordeco) has cautioned its member-consumers against transferring their electricity service to Davao Light and Power Co. (Davao Light), stressing that the latter’s authority to operate in parts of Davao del Norte and Davao de Oro remains provisional and subject to ongoing regulatory and legal proceedings.
The advisory comes amid confirmation from the Energy Regulatory Commission (ERC) that it has granted Davao Light provisional authority to begin limited operations in its expanded franchise areas.
Consumer Advisory
In an advisory issued on January 20, Nordeco reiterated that it remains the legitimate electric distribution utility serving Davao del Norte and Davao de Oro, citing unresolved jurisdictional issues and pending court action. The cooperative urged its member-consumers to remain with Nordeco while the dispute is ongoing.
“Busa, giawhag ang atong mga pinanggang miyembro-konsumante-tag-iya sa padayon sa pagsuporta sa atong Nordeco” (Therefore, we urge our valued member-consumer-owners to continue supporting Nordeco), the cooperative said. “Dili magpadala sa mga haylo nga magpakonek sa Davao Light aron malikayan ang kasamok ug kahasol” (Do not be swayed by enticements to connect to Davao Light to avoid trouble and inconvenience).
Nordeco warned that a premature transfer to another distribution utility could result in complications related to billing, service continuity, and account settlement.
Provisional Authority
The ERC, however, has clarified that Davao Light is authorized to begin limited operations under provisional authority granted by the commission in an en banc meeting on December 12, 2025. The provisional authority is linked to Davao Light’s application for a Certificate of Public Convenience and Necessity (CPCN), the regulatory permit required for full operation in a given service area.
“ERC granted provisional CPCN to Davao Light so they can already start operating in the area (where) they have already constructed the distribution system,” ERC Legal Services Director III Ma. Corazon C. Fines said during the meeting.
Under the provisional authority and in line with Republic Act 12144, Davao Light may install distribution facilities, accept consumers, and process new connection applications in parts of Davao del Norte and Davao de Oro. The ERC emphasized that provisional authority does not constitute final approval of the CPCN and may be modified or revoked depending on the outcome of the ongoing hearings and evaluations.
Regulatory Review
A CPCN serves as formal authorization certifying that a power distribution utility’s operation is necessary, financially viable, and consistent with public interest. The approval process involves public hearings, as well as technical and financial assessments covering service reliability, power rates, and system capability.
Nordeco has maintained that Davao Light’s CPCN application remains under evaluation and has not attained final approval. It cited issues raised during a hearing on January 13, 2026, claiming Davao Light was unable to provide firm assurances that power rates would not increase and that brownouts would be avoided once it fully enters Nordeco’s traditional service areas.
“Ang balaud sa pag-expand sa Davao Light ngadto sa Nordeco franchise area, dili pa final kay gipasaka pa sa Supreme Court ang pag-question sa maong bala-udnon” (The law expanding Davao Light’s operations into Nordeco’s franchise area is not yet final because its validity has been questioned before the Supreme Court), Nordeco said.
Legal Challenges
Republic Act 12144, which lapsed into law on April 6, 2025, expanded Davao Light’s franchise to include areas long served by Nordeco. In June 2025, Nordeco filed a petition for certiorari and prohibition before the Supreme Court, seeking to declare the law unconstitutional and to stop its implementation through a temporary restraining order and writ of preliminary injunction. The case remains pending.
Separately, on December 22, 2025, lawmakers filed House Bill No. 7006 proposing to grant Nordeco a franchise to construct, establish, operate, and maintain electric distribution systems in Davao del Norte and Davao de Oro. The bill was authored by APEC Party-list Rep. Sergio Dagooc and PHILRECA Rep. Presley de Jesus and covers multiple municipalities in both provinces, including Tagum City and the Island Garden City of Samal.
Consumer Groups Criticize Franchise Move
The proposed Nordeco franchise has drawn criticism from the Davao Consumers Movement (DCM), which described House Bill No. 7006 as “tone deaf” to public sentiment. In a statement dated January 20, 2026, the group cited persistent complaints about unreliable power supply and high electricity rates in Nordeco-served areas.
“These are not trolls, they are real families and businesses struggling with unreliable service and rising costs,” the group said. DCM highlighted reported appliance damage and business losses in Samal Island due to power disruptions, calling these “everyday consequences” of inadequate service.
The group urged lawmakers to prioritize affordable and reliable electricity, saying consumers have endured years of unmet promises. “What consumers want is simple: affordable, reliable power services that support households and livelihoods. Anything less is unacceptable,” it said.
Source:
https://www.sunstar.com.ph/davao/erc-grants-davao-light-provisional-authority-for-expansion
https://www.sunstar.com.ph/davao/nordeco-warns-consumers-vs-transferring-to-davao-light
